EANS-News: Semperit AG HoldingSemperit in Q1-3 2016 with solid development in
a challenging market environment

17.11.2016 – 07:32

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quarterly report
- Revenue at EUR 647.6 million (-6.4%) slightly below prior-year level
- Declines in EBITDA (-4.2%) and EBIT (-13.5%)
- Confirmation of updated outlook for 2016
The publicly listed Semperit Group showed a solid business development in the
first three quarters of 2016 in spite of the ongoing
difficult market environment. In the Industrial Sector, Semperit increased the
sales volumes and gained market share despite the declining development of the
sales markets. This development helped to narrow down the negative effects of
the high price pressure and exceptional factors burdening the Medical Sector. In
the first three quarters of 2016, the Group's revenue was at EUR 647.6 million,
6.4% below the prior-year value of EUR 692.1 million. The Group's EBITDA
decreased by 4.2% to EUR 72.2 million (after EUR 75.4 million). EBIT also
developed downward to EUR 46.7 million, compared with EUR 53.9 million in the
previous year. The EBITDA margin (11.1% after 10.9%) and the EBIT margin (7.2%
after 7.8%) remained largely on the previous year's level. Due to negative
foreign currency effects and higher interest costs, earnings after tax fell from
EUR 40.1 million to EUR 23.4 million.
"The weak sector economy in numerous sales markets had as well an impact on us
in the past quarter. We were confronted with declining demand and high price
pressure above all in the Industrial Sector, especially in the Sempertrans
segment. In view of these circumstances, it is satisfying that we achieved
volume growth in all industrial segments and further expanded our market
position. As part of our globalisation strategy at Semperform, for example, we
have succeeded in entering the US market for window and door profiles. This way
we developed significantly better than the market in the Industrial Sector and
therefore were able to narrow down the negative effects from the medical
business," explains CEO Thomas Fahnemann on the company development.
In the third quarter of 2016, the Group's revenue decreased to EUR 208.9 million
(after EUR 241.3 million) due to a weak market and high price pressure at the
same time. EBITDA was at EUR 19.4 million (after EUR 25.1 million), while EBIT
was EUR 10.4 million (after EUR 17.7 million).
Semperit boasted a sound capital basis as reflected by its equity ratio of 37.0%
(31 December 2015: 38.7%) at the balance sheet date. Cash and cash equivalents
amounted to EUR 131.7 million on 30 September 2016, compared to
EUR 126.4 million at the end of 2015. "The stable development of our capital
structure and the further increase of cash and cash equivalents show that even
under very challenging conditions we are able to perform well," states
Semperit's CFO Johannes Schmidt-Schultes.
Industrial Sector: solid development in difficult markets
The Industrial Sector (Semperflex, Sempertrans and Semperform segments) showed
an overall solid development contrary to the persisting market trend. All
production sites were well utilised.
The Semperflex segment increased its market share based on a strong sales
performance in all business units, again with high profitability. The
Sempertrans segment showed good capacity utilisation and further volume growth.
However, high price pressure and a new product mix due to weak demand caused
lower shares in revenue and earnings. The Semperform segment showed a stable
development and recorded a further volume growth thanks to a strong sales
performance and the entry into the US market.
At EUR 389.3 million, revenue of the Sector was almost on the prior-year level
(-1.6%) in the first three quarters of 2016. EBITDA decreased by 5.1% to
EUR 71.7 million.
Medical Sector: focus on core markets
The Medical Sector (Sempermed segment) was burdened by high margin pressure and
exceptional factors. Considering the unsatisfying price situation in the global
glove market and the persisting burdening influence on the cooperation with the
joint venture partner in Thailand, Sempermed now focuses on the core markets
Europe and North America. The overall focus is on sales of Sempermed brand
gloves. This sales strategy, which was adapted to the current market conditions,
is intended to lead to further cost savings and efficiency enhancements in the
coming quarters. The start-up costs caused by the ongoing capacity expansion in
Malaysia had a negative effect on earnings during the reporting period.
The revenue of the Sector decreased by 12.9% to EUR 258.3 million in the first
three quarters of the financial year. EBITDA fell to EUR 9.8 million after
EUR 19.4 million.
Outlook 2016
For the fourth quarter of 2016, Semperit expects no significant changes of the
market conditions. The generally low demand in the Industrial Sector is expected
to continue due to the economic situation. In the Medical Sector, which is not
cyclically sensitive, increased raw material and energy prices and continuing
price pressure are to be expected, while demand will develop steadily.
Semperit confirms the outlook updated on 20 September 2016. Due to the ongoing
difficult situation in the Medical Sector and declining demand in the Industrial
Sector caused by the economic situation, in particular in the Sempertrans
segment, the operational results of 2016 of the Semperit Group will be well
below the results of 2015 (restated values). This results in a forecast decline
in EBITDA by approximately 10% and in EBIT by approximately 20% for the overall
financial year of 2016.
The Semperit Group will continue its growth strategy consistently despite more
difficult economic conditions. The focus will be on entering into new markets in
the Industrial Sector and the expansion and optimisation of existing production
capacities. In the Medical Sector (Sempermed segment), the sales focus remains
on the core markets and on commissioning further production capacities in
Malaysia. Profitability shall be improved by continuing process optimisation and
efficiency enhancements as well as by the realisation of a cost reduction
programme.
The report on the first three quarters of 2016 is available at
www.semperitgroup.com/ir.
Photo download: https://semperitgroup.picturepark.com/Go/wPXX3GzO
About Semperit
The publicly listed company Semperit AG Holding is an internationally-oriented
group that develops, produces, and sells highly specialised rubber and plastic
products in more than 100 countries for the medical and industrial sectors:
examination and surgical gloves, hydraulic and industrial hoses, conveyor belts,
escalator handrails, construction profiles, cable car rings, and products for
railway superstructures. The headquarters of this traditional Austrian company,
which was founded in 1824, are located in Vienna. The Semperit Group employs
more than 7,000 people worldwide, including close to 4,100 in Asia and more than
800 in Austria (Vienna and production site in Wimpassing, Lower Austria). The
group has 22 manufacturing facilities worldwide and numerous sales offices in
Europe, Asia, America and Australia. In 2015, the group generated sales of EUR
915 million and EBITDA of EUR 96 million.
Further inquiry note:
Martina Büchele
Group Communications Manager
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com
end of announcement euro adhoc
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company: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX GP
stockmarkets: official market: Wien
language: English